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Environmental information systems
The indicator shows the gross final consumption of energy from renewable energy sources (RES), expressed as a share of the gross final consumption of energy from all sources.
Iceland has made significant progress in adopting renewable energy, with 79.5% of its total energy consumption and 99.9% of electricity production coming from renewable sources by 2022. This achievement places Iceland far ahead of the EU’s 2030 target of having at least 45% of energy consumption sourced from renewables. Iceland’s success is largely due to its abundant geothermal and hydropower resources, which account for almost all electricity production and heating. This has reduced the country’s dependence on fossil fuels and has also made Iceland one of the global leaders in renewable energy use.
However, fossil fuels – mainly oil and coal – continue to play a role in sectors like transport and fisheries. Despite the overall share of non-renewable energy decreasing over the years, a complete transition to renewables in these sectors has proven challenging. Iceland has also seen growth in wind and solar energy production, though these remain small compared with geothermal and hydropower. While the potential for diversification exists, Iceland’s focus on geothermal energy for electricity and heating will probably persist, driven by its unique geological advantages.